Senate, National Assembly laud govt for advancing informal economy

Senate, National Assembly laud govt for advancing informal economy

The Senate and the National Assembly commended the Royal Government for its unwavering commitment to promoting, developing, supporting, and facilitating citizens engaged in work and business within the informal economy.

The two-day Senate and the National Assembly Congress held on June 2-3 at the National Assembly Palace under the chairmanship of Senate President Hun Sen also commended the government’s initiatives to create opportunities for citizens to grow their businesses and expand employment, particularly to improve their standard of living and overall well-being, read a statement of the National Assembly (NA) released yesterday.

The Congress approved three main topics for discussion, including the social protection system, the informal economy, and the agricultural sector.

The Congress acknowledged the government’s initiatives to create opportunities for citizens to grow and expand their businesses, with the ultimate goal of improving living standards and the overall well-being of the population.

Addressing the joint session of Senate and the National Assembly, Prime Minister Hun Manet presented a progress report on the National Strategy for the Development of the Informal Economy for 2023-2028.

He said that the development of the informal economy is one of the six priority policies of the Royal Government, as outlined in the National Strategy on the Development of the Informal Economy 2023-2028, which was officially launched in October 2023.

“The informal economy plays a vital role in the national economy, contributing more than 26.4 percent of the gross domestic product (GDP). Currently, 97 percent of micro, small, and medium-sized enterprises operate within the informal economy, serving as the backbone of a vibrant local economy that reaches every corner of the country,” said Mr Hun Manet.

“It functions as a socio-economic artery, sustaining daily livelihoods, generating local employment, and supporting the equitable distribution of economic growth to help to reduce poverty.”

He further emphasised that the informal economy plays a key role in building and strengthening local economies, with the potential to evolve into an industrial network supporting production chains for medium- and large-scale industries, particularly in special economic zones, industrial parks, and free trade zones.

According to the NA statement, as of the 2019 Cambodia Labour Force Survey, nearly 6.2 million workers, out of a total employed population of 7.9 million, are engaged in informal employment — representing a staggering 78.5 percent of the workforce.

Following extensive discussions of the Congress, along with detailed explanations and interventions from the head of the Royal Government and relevant experts, the Congress approved and fully endorsed the resolution on the informal economy. This decision is viewed as a crucial step toward strengthening the national economy and enhancing the livelihoods of the Cambodian people.

Yang Peou, Secretary General of the Royal Academy of Cambodia (RAC), told Khmer Times yesterday that the Congress marked a historic milestone in Cambodia, as both chambers convened to address key national issues in collaboration with the Royal Government.

He said that he had followed and noted that the Congress had put one of the agenda items, the informal economy, for joint discussion.

“This is a highly relevant and important agenda item, especially in the current context where Cambodia, like many other countries around the world, is facing an economic crisis. We must support and prioritise the informal economy, as it serves as a vital mechanism for household-level economic activity. It allows individuals and families to create jobs independently, often without the need for large amounts of capital or formal business locations,” Peou stated.

He further said that the government must find new methods or policies and new options to support the informal economy as a key mechanism to ensure social security and food security, as well as the progress of Cambodian society.

“Indeed, the informal economy plays a critical role in helping people lift themselves out of poverty and generate income,” Peou said, adding, “It empowers citizens to create their own capital and livelihoods, making it a fundamental driver of income generation and poverty reduction, not only in Cambodia but in countries around the world.”

Speaking to Khmer Times, Vorn Pov, President of the Independent Democracy of Informal Economy Association (IDEA), expressed his appreciation for the National Assembly and Senate for raising the issue of the informal economy. “It reflects their genuine concern for informal economy workers. This sector has made a significant contribution to national economic growth and poverty reduction.”

The Ministry of Industry, Science, Technology & Innovation (MISTI) reported that for more than 18 months, relevant ministries and institutions have actively implemented the National Strategy for Developing the Informal Economy with a proactive spirit and strong sense of responsibility, resulting in commendable progress.

As of June 2, 2025, a total of 80,421 informal economy actors have submitted applications through the digital platform, including 3,246 employees of micro-enterprises, 1,773 micro-enterprises, and 75,401 self-employed individuals.

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